top of page
Writer's pictureKerrin Simmonds MBA

The Strata Titles Act 1985 Review and SCA (WA)'s vision for the future

Updated: Dec 23, 2024

Since its introduction to Western Australia in the 1960s, strata living has gradually grown in popularity. Initially seen as a niche solution, it has become a vital part of the housing landscape, offering affordable and community-based living options.


As WA’s population continues to grow and the need for higher-density living becomes more pressing, strata is poised to play an even larger role in the future of housing.


Following the legislative changes implemented in 2020, the state government has undertaken the statutory review of the Strata Titles Act 1985 this year, providing the opportunity to address gaps in the legislation, adapt to sector growth, and prepare for future challenges.


The Strata Community Association of WA [SCA (WA)], the peak body for the strata sector in WA, has submitted recommendations as part of this phase-one consultation.



With a history of advocacy and professional development, SCA (WA) has long championed higher standards for the sector and continues to lead the way in ensuring strata evolves in line with community needs.

The Role of SCA (WA): A History of Advocacy and Leadership


For over 30 years, SCA (WA) has been at the forefront of strata sector advocacy and education. Representing strata managers, owners, and service providers, the association has worked tirelessly to professionalise the sector. It has implemented a self-regulation model, introduced educational standards, and advocated for greater accountability.


SCA (WA) members are held to the highest standards of education, expertise, and experience, ensuring that strata communities are managed with professionalism and care. This commitment is what sets SCA (WA) members apart in a largely unregulated sector.


Challenges in Strata Management


The strata sector is growing rapidly, but regulation and governance have struggled to keep pace. Despite significant responsibilities—managing complex buildings, navigating intricate legislation, and overseeing substantial funds—strata managers face minimal oversight or enforcement of compliance. This leaves consumers vulnerable and the profession undervalued.


Adding to these challenges, the profession suffers from a high annual turnover rate of 31%, with recruitment cited as a major issue. Stress levels among strata managers are at an all-time high, as they manage increasing demands from owners while grappling with inadequate support structures.


SCA (WA)’s Submission to the Review


SCA (WA)’s submission emphasises the urgent need for reform to protect owners, professionalise the sector, and future-proof strata management in WA. The association has consistently advocated for measures that balance consumer protection with sector sustainability. While a licensing model remains an ideal goal, SCA (WA) acknowledges the government’s limited appetite for such reform and instead supports a co-regulation model as a pragmatic first step.


This co-regulation approach would leverage the expertise and infrastructure of SCA (WA) while involving government oversight to enforce standards. SCA (WA) believes that this partnership would pave the way for future licensing while addressing immediate challenges.


SCA (WA) envisions a co-regulation model as a practical and effective solution. This framework would allow the association to collaborate with government agencies to set standards, monitor compliance, and enforce accountability. We suggest to borrow some of the best elements from other states, enhancing consumer confidence and the sector’s reputation. A co-regulation system would also include mechanisms to ensure that non-compliant strata managers cannot continue operating unchecked, providing much-needed consumer protection.


Building Trust Through Action


As strata continues to grow in popularity and importance, the sector requires stronger governance, greater accountability, and robust professional standards. SCA (WA)’s recommendations aim to achieve this by laying the groundwork for a more transparent and trusted sector.


Key Recommendations from the SCA (WA) Submission


SCA (WA) has identified several priority areas for reform in the current review. These recommendations aim to improve accountability, transparency, and trust within the sector:


  1. Establishment of a Strata Commissioner’s Office - A dedicated office would regulate strata managers, oversee registration, enforce compliance, and provide education and advisory services to stakeholders.

  2. Clear Definition of ‘Strata Manager’ - The term should encompass anyone employed to perform scheme functions, with all such individuals meeting minimum education and regulatory standards.

  3. Mandatory Audits of Trust Accounts - Regular audits of strata company trust accounts would ensure greater financial transparency and security for owners.

  4. Revisions to By-laws - Proposed updates to Schedule 1 and 2 By-laws would address modern issues like parking, rubbish, smoke drift, and debt recovery, ensuring they remain fit for purpose.

  5. 10-Year Plans - A review of 10-year maintenance plans would prioritise safety, structural integrity, and qualifications for preparers while introducing a tiered system for schemes of varying complexity.


The full SCA (WA) submission on the statutory five-year review is available



.



Comments


bottom of page